By Love Wilhelmina Abanonave
Economist and Finance Professor at the University of Ghana, Professor Godfred Bokpin, has credited the ruling government with stabilising the Ghanaian cedi, attributing the currency’s recent appreciation against major foreign currencies to reduced government expenditure.
Professor Godfred Bokpin, has credited the ruling government with stabilising the Ghanaian cedi, attributing the currency’s recent appreciation against major foreign currencies to reduced government expenditure.
According to Professor Bokpin, the NDC administration has made significant strides in cutting down wasteful spending, contributing to the cedi’s recent stability. He noted that the government has reduced expenditure by GHS10 billion in just five months compared to 2024, a move that has helped inject stability into the economy.
Professor Bokpin expressed admiration for the government’s swift action, stating that they have achieved in five months what Ghanaians have been calling for since the COVID-19 pandemic in 2020. He further emphasised the importance of fiscal consolidation and reducing unnecessary spending to avoid severe economic consequences.
Speaking on TV3’s Key Points, he said: “We have seen this government do within five months what we have been calling for since COVID-19.”
The lecturer’s comments come amid a heated debate about the factors contributing to the cedi’s appreciation. While the ruling government attributes the gains to its policies, the opposition New Patriotic Party (NPP) claims the improvement stems from policies it implemented while in office.
Former NPP presidential candidate Mahamudu Bawumia recently argued that the ruling government cannot point to a single policy responsible for the cedi’s appreciation.
However, Professor Bokpin’s analysis suggests that the current administration’s actions have played a significant role in stabilising the currency.
